Northern Graphite owns a 100% interest in the Bissett Creek deposit, located in eastern Ontario. Bissett Creek is an advanced stage project with a bankable Final Feasibility Study and its major environmental permit. The Company believes Bissett Creek has the highest margin, best flake size distribution and lowest marketing risk of any new graphite project, and has the added advantages of low capital costs and realistic production levels relative to the size of the market.
Northern Graphite Corporation Press Release
May 8, 2018 – Northern Graphite Corporation (NGC:TSX-V, NGPHF:OTCQX) (“Northern” or the “Company”) announces that ongoing metallurgical testing being carried out by SGS Lakefield (“SGS”) has identified a very promising opportunity to simplify the process plant design and reduce capital and operating costs for the Bissett Creek Project. The test work is part of the Company’s planned update of its Feasibility Study (“FS”) and is subject to further evaluation, testing and cost/benefit analysis.
SGS evaluated a number of crushing and grinding options with the objective of creating a simpler, lower cost flow sheet that maximizes the recovery of high value, large and XL flake graphite and maintains concentrate purity levels, while sacrificing the recovery of some lower value, smaller flake material. The original flow sheet in the FS consisted of SAG milling, flash flotation, regrinding followed by rougher flotation, and then polishing and cleaning which lead to overall recoveries of up to 95 per cent. Testing to date indicates that SAG milling alone, followed by flotation, polishing and cleaning, can achieve recoveries of up to 90 per cent with almost no loss of large and XL flake production. This creates the potential to remove a large regrind ball mill and the rougher flotation circuit from the process plant.
Ore from the Bissett Creek deposit is not “hard” compared to many conventional mining operations and it fractures easily along cleavage planes where the graphite flakes are located. As a result, the graphite is liberated relatively easily with a minimum of crushing and grinding and little degradation of the large and XL flakes. The Company intends to test the new approach on a number of samples from across the deposit to ensure results are consistent. While this testing program has delayed progress on the Company’s FS update, it could lead to a meaningful reduction in capital and operating costs.
Gregory Bowes, CEO commented that: “A significant competitive advantage of the Bissett Creek Project is that it has one of the simplest flow sheets in the industry which contributes to it also having among the lowest processing costs per tonne of ore. Recent test results have created the potential to improve project economics which are already attractive at current, relatively low graphite prices.”
Gregory Bowes, B.Sc. MBA, P. Geo., a Qualified Person as defined under National Instrument 43-101, has reviewed and is responsible for the technical information in this news release.